Anyone can create an offer letter, but there are ways to frame it so the celebrity is more likely to say yes.
Managing your brand may entail overseeing an agency or brand executive which is responsible for obtaining a celebrity’s endorsement.
Here’s a ten point checklist ensuring the offer has the highest probability of acceptance:
- Set negotiation parameters, don’t have them set for you. Unlike television shows such as Pawn Stars & American Pickers, it’s in your best interest to frame the potential investment by making the initial offer. This takes away an agent’s ability to start with a dollar amount you won’t like.
- Allow room to negotiate. Your initial offer probably won’t be accepted so leave room to negotiate. Both sides want to feel they receive concessions making this doubly important.
- Making a “low-ball” offer is offensive. The offer will be dismissed immediately with no second chances. Celebrity agents have large egos and celebrities have even bigger egos. An agent doesn’t want to look bad in front of their client so low-ball offerings don’t receive consideration.
- Do the thinking for them. Present the benefits in writing so they can be shared amongst multiple decision makers (agent, manager, publicist, celebrity, family, posse etc.). Present all of the reasons to say yes.
- Assume nothing. It is unlikely the agent will see all benefits or communicate them as well as you can. Be sure to review the benefits again by phone.
- Split the Baby. Allowing room to negotiate makes it possible to split the difference on dollars if all other terms are agreed upon.
- Read the Tea Leaves. Is the celebrity’s career currently hot, warm or cold? Price can change daily based upon their perception and the laws of supply and demand.
- If you ask how much, you lose all leverage. Asking how much exposes you as inexperienced and in some cases “an easy mark”. This is a green light for an agent to be more aggressive on price and services.
- Be Flexible. One way to get agreement in negotiations is to have asked for all services you need plus additional services which are not necessary. “Giving in” on services is a proven way to close.
- Understanding the Fair Market Value. If you don’t negotiate celebrity deals on a regular basis go online and research sports celebrity deals as a starting point. Media generally provides an estimated dollar amount which you could use as a base. Assume television, print, radio, digital and social media are part of the deal.